Here’s the hidden toll of federal taxes: 6.1 billion hours of preparation time and $234 billion in compliance costs. So says a National Taxpayers Union Foundation study of tax complexity in the U.S. released Tuesday, as the nation’s final tax deadline looms.
Taxpayers spent an average of 6.1 billion hours in complying with current individual and corporate tax filing requirements, said Demian Brady, director of the nonpartisan research and policy group.
“Between the value of this time, and the money Americans shelled out on supplies, overhead, software, and tax preparation fees, we estimate that the federal tax system imposes over $234 billion in compliance costs alone. And billions more hours of time burdens, along with higher costs, may soon be on the way,” warned Mr. Brady.
The solutions for these problems are not rocket science. The organization recommends some common sense.
“A fair and sound tax system should be based on five basic principles: simplicity, transparency, predictability, responsiveness and efficiency. Our findings show that the current Tax Code gets failing grades on these points, and taxpayers suffer the consequences throughout the year, not just on Tax Day,” noted Mr. Brady.
Despite a culture that offers software and smartphones to make many chores easier, complying with federal tax laws continues to be a “massive drain” on time, energy and finances, noted Pete Sepp, president of the group.
“It doesn’t have to be this way,” he said. “For the sake of our economy at home, our competitiveness abroad, and our rights as citizens wherever we choose to live, Congress and the president must begin simplifying the tax system now.”
• Jennifer Harper can be reached at jharper@washingtontimes.com.
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